Bitcoin Is reached The $50,000 level for the first time in two years, due to future interest rate cuts and recent regulatory approvals for U.S. exchange-traded funds that track its value.


Bitcoin. Image credit: MichaelWuensch via Pixabay, CC0 Public Domain

The value of the world’s largest cryptocurrency has risen 16.3 percent this year, reaching its highest point since December 27, 2021.

This is after the start of success. Place ETFs Last month, that followed an initial 20% selloff, likely contributing to Bitcoin’s recent rally. Notably, crypto-related stocks, including Coinbase, Riot Platforms, Marathon Digital, and MicroStrategy, also saw positive momentum on the back of Bitcoin’s rise, rising from 4.9% to 11.9%.

Bitcoin reaching $50,000 is an important milestone in light of recent market events.

Ether, the second-largest cryptocurrency, rose 4.12 percent to $2,607.57.

The development follows the US securities regulator’s approval of the first US spot bitcoin ETFs on January 10, a major milestone for both bitcoin and the wider crypto industry.

Bernstein analysts estimate that capital inflows into new ETFs will continue to accumulate, surpassing $10 billion by 2024. In contrast, analysts at Standard Chartered have suggested that these products could attract between $50 billion and $100 billion in the current year alone. Some analysts have projected five-year inflows of $55 billion.

Investors are also eagerly anticipating the coming April “halving” of bitcoin, a process designed to slow the release of bitcoin. With a limited supply of 21 million tokens, of which 19 million have already been created, the past three bitcoin halvings have been associated with market rallies, including the most recent one in 2020.

written by Alius Norica